What share of U.S. homes are bought with cash?

Q: What share of U.S. homes are bought with cash?

Approximately 32% of U.S. existing-home purchases in 2024 were all-cash transactions — roughly double the 14% reading of 2007 and the highest share in the modern record. The National Association of Realtors tracks all-cash purchases as part of its monthly Existing Home Sales report. The 2024 share of 32% is one of the most-cited features of the post-2020 housing cycle. The post-2020 cash surge 2020: ~19% all-cash 2021: ~24% 2022: ~28% 2023: ~30% 2024: ~32% Who is buying with cash Cash buyers fall into several categories. Investor cash buyers — institutional single-family-rental funds, individual landlords, and short-term-rental operators — account for roughly 15-20% of total transactions. Trade-up cash buyers — older households selling a paid-off home and buying a smaller property outright — account for another 10-12%. Foreign cash buyers, primarily Chinese, Mexican, and Canadian, account for the remaining 2-5%. The rate-lock connection The cash-buyer share has risen sharply in the rate-lock era because the cash buyer is unaffected by mortgage rates. With prevailing rates at 7%+ and a structural shortage of resale inventory, cash buyers can outbid mortgage-financed buyers and clear inventory at premium prices. Implications The high cash-buyer share is a key reason home prices have held up despite the rate-driven volume collapse. Cash buyers — particularly institutional investors — have effectively replaced mortgage-financed buyers in the marginal-price-setting role for many regional markets.

Question

Short answer. Approximately 32% of U.S. existing-home purchases in 2024 were all-cash transactions — roughly double the 14% reading of 2007 and the highest share in the modern record.

The National Association of Realtors tracks all-cash purchases as part of its monthly Existing Home Sales report. The 2024 share of 32% is one of the most-cited features of the post-2020 housing cycle.

The post-2020 cash surge

2020: ~19% all-cash
2021: ~24%
2022: ~28%
2023: ~30%
2024: ~32%

Who is buying with cash

Cash buyers fall into several categories. Investor cash buyers — institutional single-family-rental funds, individual landlords, and short-term-rental operators — account for roughly 15-20% of total transactions. Trade-up cash buyers — older households selling a paid-off home and buying a smaller property outright — account for another 10-12%. Foreign cash buyers, primarily Chinese, Mexican, and Canadian, account for the remaining 2-5%.

The rate-lock connection

The cash-buyer share has risen sharply in the rate-lock era because the cash buyer is unaffected by mortgage rates. With prevailing rates at 7%+ and a structural shortage of resale inventory, cash buyers can outbid mortgage-financed buyers and clear inventory at premium prices.

Implications

The high cash-buyer share is a key reason home prices have held up despite the rate-driven volume collapse. Cash buyers — particularly institutional investors — have effectively replaced mortgage-financed buyers in the marginal-price-setting role for many regional markets.

Sources

U.S. Census Bureau Survey of Construction; National Association of Realtors Existing Home Sales report; Freddie Mac Primary Mortgage Market Survey; National Bureau of Economic Research Business Cycle Dating Committee.